Above-Forecast CPI Reading Lends Support To Koruna

EUR/CZK has edged higher after the release of local inflation data and the koruna is the third-best performer in EMEA space. The pair last deals -0.052 at 24.240, holding onto the lossess registered in reaction to the Czech CPI report. Technically, a move through Nov 29 low of 24.203 is needed to revive bearish impetus. Bulls look for a rebound above the 50-EMA (24.419) and towards Oct 26, 2023/Jul 7, 2022 highs of 24.747/24.797.

• Czechia's inflation decelerated to +7.3% Y/Y in November from +8.5% prior, printing slightly above the CNB's forecast (+7.1%) and the median estimate in a Bloomberg poll (+7.2%). The central bank will release comments prepared by its staffers at 12:00GMT/13:00CET as the Bank Board debates the optimal timing for the start of the easing cycle ahead of its next meeting scheduled for December 21.
• Government officials have been trying to talk retail chains into refraining from food price hikes and pass on the reduction in VAT rates on food to consumers during the seasonal repricing of goods and services. Agriculture Minister Vyborny will discuss the matter with anti-monopoly authorities tomorrow, while Transport Minister Kupka said that retailers could face heavy fines if they fail to comply.